Property tax lien: How does this affect my bankrutpcy?
If you owe for previous years taxes on non-exempt property then there may be a tax lien filed with the Internal Revenue Service and against the property. This debt will not go away by filing bankruptcy and must be provided for the in the bankruptcy plan. The Internal Revenue Service will file proof of claim listing all the business, property and personal taxes owed.
If you decided to surrender or sell the non-exempt personal or business property then all the proceeds from the sale will be paid against the tax liens and any remaining proceeds will be paid the the Chapter 13 trustee. The trustee will then pay these funds to your unsecured claims filed in your bankruptcy. This will not reduce your secured debt plan base.
Your bankruptcy plan payment will increase if an I.R.S proof of claim is filed with large sums due. In many cases, this increase will be extreme and you will need to consult with your bankruptcy attorney to discuss your options of possible surrender to the business and/or non-exempt property.
Please fill out our free evaluation form to determine if bankruptcy is right for you.
